US stocks struggle for direction amid weakening economic outlook
US stocks opened broadly flat on Tuesday morning as investors tempered trading activity amid a weakening economic outlook.
While the Nasdaq dipped 0.34 per cent, the blue-chip S&P 500 edged 0.03 per cent higher and the Dow Jones added 0.18 per cent.
The reinstating of Covid curbs in many states of America, including mandating mask wearing and vaccine passports for some businesses in New York, is knocking investor sentiment.
Yields on ten-year Treasuries dipped to 1.16 per cent.
FTSE 100 climbs to three-week high to build on strong start to August
London’s FTSE 100 rose to a three-week during the afternoon session on Tuesday to continue its strong start to August.
The capital’s premier index inched up 0.19 per cent to 7,095 in early exchanges. It reached an intra-day high of 7,119.
The gains added to a strong day for the blue-chip index on Monday, triggered by a flurry of M&A activity driving up mid-cap stocks.
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The FTSE was also lifted by a bumper set of results from oil giant BP, which announced it will hike its dividend four per cent after profits reached $28bn in the second quarter of this year.
Michael Hewson, chief market analyst at CMC Markets UK, said: “There is little doubt that the rise in the oil price has helped BP this quarter, along with the rest of its peers.”
However, Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, was less chipper.
“Right now on the tight rope of change, BP is still highly reliant on its fossil fuel portfolio, but there are likely to be wobbles ahead, as green targets loom and BP tries to cross the chasm to reach a low carbon future.’’
The domestically-focused FTSE 250 took the lead from its senior rival, rising to 0.38 per cent to 23,297 to reach a record high, while AIM shares edged up 0.04 per cent.
A stronger pound – rising 0.06 per cent against the greenback to buy $1.38 – tempered gains on the export-focused FTSE 100.
Winners and losers
Oil megacap BP PLC led the morning’s gains, shooting up 5.18 per cent to 304.75p after investors flooded into the company following the increase to its dividend.
Read more: BP’s dividend edges up as profit beats estimates on climbing oil prices
Miner Anglo American came second, climbing 2.96 per cent to 3,397.50p. Supermarket chain Sainsbury’s came third, adding 2.35 per cent to hit 291.90p.
Engineering shares led the morning’s losses. Smiths Group was the worst performer on the FTSE 100 during the opening session, plummeting 8.75 per cent to 1,434.50p.
Bookmaker, Flutter Entertainment, was the second worst performer, down 3.33 per cent to 12,405p, British Airways parent group IAG lost 2.41 per cent 4,654p.
Around the world
Asian shares posted mixed performances in overnight trading.
Japan’s Nikkei dropped 0.5 per cent and Hong Kong’s Hang Seng slipped 0.41 per cent. However, China’s CSI 300 added 0.01 per cent after Chinese authorities moved to ease tensions with US financial regulators.
European shares dipped during the open – the Stoxx 600 fell 0.01 per cent.
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